State Workforce

Chapter
29, Section 6 states that “The operating budget shall indicate the number
of positions proposed to be authorized for each state agency or such other
public instrumentality for the ensuing fiscal year, the number of positions for
each state agency in the current and ensuing fiscal years and such other
information as may be held to explain the anticipated results of the proposed
expenditures”.

To address this requirement, the Governor’s budget recommendation
includes budgeted Full Time Equivalency (FTE) counts summarized at the
Government area level. Additional detail is included throughout the Budget
Recommendations to indicate the employee level within specific departments.

Effect of the Budget on Personnel to Date

Annually, the Executive Office for Administration and
Finance (ANF) provides FTE caps to the Executive Branch Departments,
prioritizing hiring in areas where positions are critical for public health and
safety or where a position results in additional revenue or cost savings for
the Commonwealth. FTE caps are implemented at the department level and
reviewed regularly by ANF budget analysts to ensure agencies are taking the
necessary steps to live within capped levels. It is important to note that FTEs
correspond to budgeted level of staffing during any given fiscal year. For a
number of reasons, particularly timing of planned hire dates, actual state
employee head count and the number of budgeted FTEs may vary within state
agencies. In addition, FTE counts typically are less than employee headcount or
jobs, since a portion of state employees do not work full-time schedules.

Between the fall of 2008 and January 2013, the state
workforce for jobs in the Executive Branch funded with operating dollars has
declined by 3,541 jobs. The reduction can be attributed to layoffs, attrition
and retirement across all agencies in the Executive Branch. This trend has been
mirrored in the Non-Executive Branch. After accounting for an increase of 2,770
positions in January 2010 corresponding to the transition of seven county
sheriffs’ offices to state agencies, total non-Executive budgetary jobs have
declined by over 2,918 jobs. When considering employees paid in both branches,
from all funding sources, the total state FTEs have decreased by close to 6,000
since FY 2008 (please see FTE discussion in the FY 2012 Statutory Basis
Financial Report prepared by the State Comptroller’s Office).

The following chart lists the latest snapshot information.
It should be noted that roughly 1,270 transportation FTEs were shifted
off-budget in the Fall of 2009 while 2,770 sheriff employees where shifted on
to the state budget on January 1, 2010. These changes should be accounted for
when making historical comparisons.

Definitions:

Standard Workforce: Describes the set of employees who are likely working
regularly. It excludes those on unpaid leave and those in contractor, board
member and seasonal positions.

FTE: “Full-Time
Equivalent”. Measures the workforce based on the hours each job is scheduled
to work (not on hours actually worked per job). For example, two employees each
scheduled as half-time (0.5) count as two jobs (“employees”), but only one FTE.

Jobs: Actual
people (“employees”) on the pay period, also known as “head count”. It is a
measure of workforce counting the actual number of employees filling
positions.

Budgetary: Positions
funded by the operating budget through direct appropriation and retained
revenue accounts (i.e., GAA) based on the default account number in HRCMS.

Non-Budgetary:
Positions funded by sources other than the state’s operating
budget (federal, trust, grant and capital)

Executive: Positions
assigned to agencies in the Executive Branch, where the Governor is the Chief
Executive Officer.

Non-Executive:
Positions assigned to agencies not within the Executive
Branch. These include Legislative, Judiciary, Independents and the colleges
and UMass in Education.

H.1 Employment Levels

In reviewing the funding levels available to them for 2014, agencies
must critically evaluate their employee level and determine further reductions are
necessary to maintain a balanced budget. The Governor’s FY 2014 budget
recommendation projects a total of 64,655 budgetary FTEs. This amount includes
FTEs from both Executive and Non-Executive departments as well as positions
funded from the operating accounts listed within the budget. It should be noted
that these figures are subject to change, based on various factors including
final FY 2014 funding levels, actual payroll spending experience and budgetary
guidance issued by A&F during FY 2014 spending plans (July-August 2013).

FY 2013 and FY 2014 Budgetary FTEs Levels by Government Area

EstimatedFY 2013

ProposedFY 2014

AnnualChange

Executive Branch Secretariats:

Administration and Finance

2,779

2,809

30

Education

529

565

36

Energy and Environmental Affairs

1,984

1,970

(14)

Housing and Economic Development

701

718

17

Health and Human Services

19,434

19,218

(217)

Transportation

0

0

-

Labor and Workforce Development

275

275

-

Public Safety

8,880

8,962

82

sub-total

34,584

34,517

(66)

Non-Executive Branch:

Judiciary

7,230

7,230

-

Legislature

945

945

-

Constitutional Officers and Independents

9,555

9,567

12

Campuses

12,395

12,395

-

sub-total

30,125

30,137

12

TOTAL STATE BUDGETED FTEs

64,709

64,655

(54)

Workforce Planning Goals

The Executive Office for Administration and Finance (ANF)
and the Human Resources Division have worked together to implement clear
policies surrounding employees. Each fall, ANF engages each agency in a
spending plan process in which each account is evaluated to determine how funds
will be spent for the current fiscal year. This requires a detailed
description of employees for the current year - including those currently on
staff, positions that are open and intended to be filled and new positions for
which funding is available. The goals of the employee caps are to:

Restrain Growth in State Employee Levels - Since payroll is a
large portion of many agency expenditures, and reductions in force can take so
long that savings cannot be realized in a fiscal year, caps are needed to
manage hiring within available funding levels. Although some hiring may have
small costs for the current year, the full year value of new staff have budget
impacts that must be considered.

Mitigate Shifts to Other Funding Sources – Employees come onto
the state payroll several ways including the operating budget (FTEs and
contractors), the capital budget, federal grants and trusts. All sources are
carefully reviewed to ensure we are maintaining compliance with employment laws
and also to ensure that we are not using one time sources to pay for ongoing
costs.

Manage Overtime Costs – Although hiring restrictions are
important, overtime costs must be considered to ensure that proper staffing
levels are maintained for public health and safety where responsibilities are
24 hours / 7 days per week. Oftentimes, the savings of FTE restrictions are
simply shifted to higher overtime. Therefore, prudent management of both
overtime and staffing levels must be evaluated.